Acme Packet shares fall after weak outlook

Feb 8 (Reuters) - Shares of Acme Packet Inc APKT.O, which
makes computer networking equipment, fell as much as 11 percent
to an all-time low on Friday, a day after the company forecast
weak 2008 results, which prompted analysts to temper their
views on the stock.

The company's revenue growth forecast of 26 percent to 28
percent for the year is consistent with the industry backdrop
and reflects expected lower communications infrastructure
spending, Needham & Co analyst Greg Mesniaeff said in a note to
clients.

Mesniaeff cut the price target to $12 from $18, and kept a
"buy" rating on the stock of the company, which makes session
border controllers, a device used in Internet Protocol
networks.

Earlier this week, rival Cisco Systems Inc (CSCO.O: Quotazione) gave a
weak outlook and warned of a rapid slowdown in U.S. and
European orders.

Acme Packet, which went public in 2006, also competes with
Ditech Networks Inc DITC.O and Juniper Networks Inc JNPR.O,
and dominates the session border controllers market space.

The company generates a significant portion of its revenue
in Europe, and a weak U.S. dollar is the main culprit behind
the outlook, Cantor Fitzgerald analyst Edward Jackson wrote in
a research note.

The outlook does not reflect any change in business
fundamentals and the company is poised for substantial growth
over the coming years, said Jackson, who trimmed the price
target by $1 to $14, but kept a "buy" rating on the stock.

On Thursday, Acme Packets forecast earnings of 28 cents to
32 cents a share, on revenue of $142 million to $147 million
for the year. Excluding items, it expects to earn 38 cents to
42 cents a share.

Analysts on average had expected earnings of 47 cents a
share, before items, and revenue of $151.8 million, according
to Reuters Estimates.

The company's shares, which touched an all-time low of
$7.75 earlier, pared some losses and were trading down 48 cents
at $8.22 in morning trade on the Nasdaq.
(Reporting by Jennifer Robin Raj in Bangalore; Editing by
Deepak Kannan)